Modella Capital, which purchased WHSmith's former high street business for £40mn last year, plans to close up to 150 stores as part of a sweeping restructuring. The move affects more than a quarter of TG Jones' 480 locations and puts hundreds of jobs at risk, as the 234-year-old chain struggles in a challenging retail environment.

The restructuring comes after Modella was forced to ditch the WHSmith name following its acquisition, with the brand rights retained by WHSmith which focuses on travel retail. Despite improved offerings, the rebranding to TG Jones negatively impacted consumer awareness, forcing Modella to reverse its ambitious expansion plans that previously included reaching over 500 stores.

Chaired by restructuring veteran Steve Curtis, Modella has emerged as a prolific buyer of distressed retail assets, recently acquiring chains including Hobbycraft, Claire's Accessories, and The Original Factory Shop. The current restructuring will kickstart talks with landlords and creditors, with Hobbycraft already put up for sale while Claire's and TOFS have collapsed into administration.